Chesapeake Offering Possible 6.16% Return Over the Next 39 Calendar Days

Chesapeake's most recent trend suggests a bearish bias. One trading opportunity on Chesapeake is a Bear Call Spread using a strike $27.00 short call and a strike $32.00 long call offers a potential 6.16% return on risk over the next 39 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $27.00 by expiration. The full premium credit of $0.29 would be kept by the premium seller. The risk of $4.71 would be incurred if the stock rose above the $32.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Chesapeake is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Chesapeake is bearish.

The RSI indicator is at 37.21 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Chesapeake

Short Interest Declines 13% For CHK
Tue, 12 Nov 2013 20:21:00 GMT
Forbes – The most recent short interest data has been released by the NASDAQ for the 10/31/2013 settlement date, which shows a 8,858,138 share decrease in total short interest for Chesapeake Energy Corp. (NYSE: CHK), to 58,584,030, a decrease of 13.13% since 10/15/2013. Total short interest is just one way to look […]

Will Financial Discipline Help This Energy Company?
Tue, 12 Nov 2013 18:26:12 GMT
Motley Fool – Chesapeake Energy is fighting an uphill battle to get rid of its massive debt while growing its production.

“A Real American Story”: Why the Fracking Revolution Happened Here
Tue, 12 Nov 2013 14:16:09 GMT
The Daily Ticker – http://d.yimg.com/hd/yahoofinance/lotus/1384264489937_115_21yNPeoW78bf1_1_0.jpg?s=e3eb191b112eb71289087f623197029c&c=101fe944a006668f462e676042449697&a=yahoofinance&mr=0

You tweet it, we trade it
Mon, 11 Nov 2013 22:50:00 GMT
CNBC – The Fast Money traders have the play on stocks viewers have asked for; including F-5 Networks, Expedia, Priceline, and more.

2 Stocks to Watch
Mon, 11 Nov 2013 22:41:56 GMT
Motley Fool – Here are two stocks that our analysts are watching closely at the moment.

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